Question

The entire contract is complete. The transfer to P/L A/C will be ___________

 A) 1/3rd of notional profits

 B) zero

 C) 2/3rd of notional profits

 D) entire profit​

Answer 1

Answer:

The entire contract is complete the transfer to p/LA/C will be

option : (2/3rd of notional profits

Answer 2

C) 2/3rd of notional profits

• The entire contract is complete. The transfer to the Profit and Loss Account will be 2/3rd of the notional profits.
• The businesses that a formed for a particular period or a specific project are expired when the contracts are met and completed and then the profits are to be transferred to the Profit and Loss Account or the Surplus or Reserve Account.
• The profits that are transferred are 2/3 of the notional profits estimated by the firm.
• Notional Profits are the foreseen or expected profit that a firm must estimate. Such profits haven't been made but are reflected in the books of accounts that they have been incurred.
• Two third of the primarily estimated or expected earnings are transferred to the profit and loss account.

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